Error while building cubemaps

[-Psy-]

I'm using Hammer v4. When I go to build my cubemaps in game the console gives me these errors.

] buildcubemaps 
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Creating default cubemaps for env_cubemap using skybox sky_day01_09...
Warning! Encountered old format VTF file; please rebuild it!
Error reading in file "materials/maps/cs_industrial_main/cubemapdefault.vtf"

And I get the dreaded default checkered texture when there is a reflective object...

 

[Unarmed]

Are you using HDR? I belive that that is a non-hdr sky. Maybe thats why it says "old" vmt.